Marketers Blames Dangote Refinery As Filling Stations Announce New Petrol Prices
- Petrol prices at NNPC Retail, TotalEnergies and Bovas stations in Abuja rose after the Dangote Refinery raised its gantry price to N1,200 per litre
- IPMAN spokesman Chinedu Ukadike confirmed marketers raised pump prices in response to three gantry price increases within seven days
- Ukadike questioned the logic of importing petrol at prices higher than what the Dangote Refinery charges, warning of added pressure on the naira
PAY ATTENTION: Find it fast with our new search feature at Legit.ng!
Legit.ng journalist Dave Ibemere has over a decade of experience in business journalism, with in-depth knowledge of the Nigerian economy, stocks, and general market trends.
Petrol prices at filling stations across Abuja have risen after the Dangote Refinery raised its gantry price for Premium Motor Spirit three times within seven days, with some stations now charging as much as N25 more per litre than they did earlier in the week.
Chinedu Ukadike, the Public Relations Officer of the Independent Petroleum Marketers Association of Nigeria (IPMAN) that the refinery moved its gantry price from N1,165 per litre to N1,185, then further to N1,200 in quick succession, leaving marketers with little room to absorb the increases.
Source: Getty Images
Ukadike said:
"Every time Dangote increases his price, our price will also rise."
He added that selling below replacement cost would expose marketers to losses when restocking.
Pump Prices Rise Across the FCT
Vanguard reports that that in Abuja NNPC Retail stations moved their pump price from N1,250 to N1,270 per litre.
TotalEnergies stations adjusted to N1,275, up from N1,250, while Bovas stations raised their price from N1,253 to around N1,275 per litre.
Ukadike said the pace of gantry price changes was creating uncertainty for both consumers and marketers, as the cost of replacing stock can shift considerably within a short window.
He also pointed to factors beyond the refinery gate, noting that international crude oil prices, foreign exchange movements, and geopolitical developments affecting global supply all feed into domestic petrol costs.
Higher fuel prices, he added, have knock-on effects across the economy, pushing up transport costs for agricultural produce, manufactured goods and other commodities.
Dangote's Free Haulage Scheme and the Import Question
Ukadike said the Dangote Refinery's free transportation initiative for petroleum marketers could help bring down distribution costs over time, providing some relief to consumers if the scheme is sustained.
He noted, however, that some trucks under the programme had yet to complete deliveries due to poor road conditions, and that the expansion of the initiative to Imo and Anambra states was a welcome development for South-East markets.
Source: Getty Images
On petrol imports, the IPMAN official challenged the rationale behind bringing in products priced above what the Dangote Refinery offers.
He said:
"When the products that are being imported are higher than the ones Dangote is giving us, what is the essence of importing it, putting pressure on our dollar?"
Ukadike argued that importing costlier petrol strains Nigeria's foreign exchange market without delivering cheaper fuel to consumers.
Dangote begins free petrol delivery to 6 states
Earlier, Legit.ng reported that the Dangote Petroleum Refinery has introduced a free petrol delivery programme for fuel marketers across six Nigerian states, pricing the product at N1,075 per litre under the first phase of the initiative.
A notice issued by the refinery outlined the scheme, which forms part of the company's broader Vision 2030 strategy to strengthen fuel supply logistics and improve access to petroleum products nationwide.
The refinery opened the sale of petrol to all licensed marketers, ending its previous consortium marketing arrangement.
Source: Legit.ng
